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The real innovation of the VOC was how they financed things. Prior to the VOC exploration was funded by monarchs. The VOC brought in the concept of banking and
by AndyMcConachie 8y ago
The real innovation of the VOC was how they financed things. Prior to the VOC exploration was funded by monarchs. The VOC brought in the concept of banking and share holding. Later on this spawned things like risk management and the insurance industry.
- JackFr 8y agoOne of the VOC's innovations was permanent capitalization. Prior to them, spice trading enterprises to the Indies were literally venture capital. Money was put up at the the start of the voyage and all assets were liquidated at the return. The enterprise lasted only as long as the voyage there and back. Some traders started putting together packages of voyages, again always with the stipulation that assets would be liquidated at a certain point. The bold innovation of the VOC was allow shares to be tradable, with claims on profits, and thus the enterprise could be permanently capitalized.